- 1 About Adobe Systems :
- 2 Strengths In The SWOT Analysis of Adobe
- 3 Weakness In The SWOT Analysis of Adobe:
- 4 Opportunities In The SWOT Analysis of Adobe:
- 5 Threat In The SWOT Analysis of Adobe :
- 6 Limitations of SWOT Analysis for Adobe
- 7 Weighted SWOT Analysis of Adobe
Adobe SWOT Analysis: Adobe is a customer-focused company that provides digital products and services for both individuals and businesses.
They develop innovative tools and tools, many of which are cloud-based and can be used to manage the documents in your home school, or at work.
It is among the biggest software companies worldwide, with its headquarters located in San Jose, California.
About Adobe Systems :
Adobe was established in the garage of founding John Warnock in the year 1982. The company was founded by John Warnock along with Charles Geschke.
The company’s headquarters are in San Jose, California. Adobe is among the most well-known and trusted brands in the field of software development.
Photoshop, Acrobat Reader, PDF, and Adobe creative cloud are a few of the most popular products that are part of Adobe Systems.
Adobe offers a range of products that is mostly in the areas of creativity and multimedia, with a greater focus on web-based applications that are rich in development.
As of November 2018, Adobe employs over 21,300 workers across the globe. Adobe is a global company and has operations in approximately 24 countries.
Strengths In The SWOT Analysis of Adobe
- Transition to a subscription-based model Adobe has made in the process of transitioning from a perpetual license-based model to a subscription-based model of business. The company has announced Adobe Creative Cloud replacing Adobe Creative Suite. The switch to subscription models has resulted in increased annualized recurring revenues (ARR). The company’s subscription revenues have increased to 67% of its revenue. This will aid in establishing Adobe to achieve a solid top line, which will give the company stability.
- Strong Global presence: Adobe has a diverse presence across the globe, which includes countries that are located in Europe, Asia, North America, South America, and the UK. It distributes its products through a network of distributors as well as value-added resellers (VARs) as well as independent software suppliers (ISVs) and Original Equipment Manufacturers (OEMs).
- The brand Portfolio: Adobe offers an array of products and services within both the media digital and marketing sectors. The company offers products for marketers, professionals as well as consumers, businesses, and enterprises. This lets the company have an extensive and diverse customer base.
- champion of Designers: There is no other application in graphic design to create images that comes close the Adobe Photoshop. Similar to that, Adobe has a plethora of software for web developers and media companies and gaming and the video industry. Every graphic design business that you can think of, has one Adobe product that they heavily rely on.
- Reliable and trustworthy: Adobe software is reliable and reliable. The brand can be trusted to deliver the goods. Adobe has been in existence for the last several years and is slowly but surely capturing the largest portion of the market software development.
Weakness In The SWOT Analysis of Adobe:
- Obligations to repay debt: Adobe has a large debt obligation. As of the end of FY2015 Adobe, $1.9 billion was in senior unsecured notes outstanding. The debts need a part of the money it receives to pay the debt and hinder flexibility in making plans and adapting to business changes.
- costly creative suits The creative software programs and suites from Adobe are expensive and are therefore less appealing to customers. They are not sold as often in Emerging markets.
- 360-degree feedback Many designers have complained about the fact that their requirements are not taken into consideration by Adobe when it comes out with new software. If Adobe offers a 360-degree feedback system that involves internal users and external customers, it could develop a range of fantastic software products that feature ground-breaking technological innovation.
- Insufficient presence in the video animation market: Adobe has an extremely low presence in the world of 3D animation that is dominated by 3DS Max as well as Sony Vegas. It is equipped with Adobe premier pro, but the premiere pro isn’t as well at creating 3D structures as 3DS max or Sony Vegas (this is a very debatable subject).
Opportunities In The SWOT Analysis of Adobe:
- Growth in digital marketing The global digital marketing spending is increasing, mostly because of the widespread use of mobile phones as well as the penetration of the internet. The marketing budget for digital is predicted to increase by an annual rate of 12% over the next five years. Adobe will be increasing revenue through its cloud-based marketing services.
- A bright future in Cloud computing It is predicted that there will be a growing requirement for cloud computing over the next years. The demand for cloud-based solutions is driven by operating and capital cost savings due to the paying per service subscription. Cloud computing is the most popular type of cloud computing and is expected to grow by 19.4 percent in the next five years.
- Partnering in partnership with Microsoft: Adobe and Microsoft strategically joined to help businesses embrace digital transformation. In this way, Adobe has created Microsoft Azure its preferred cloud platform. Adobe Marketing Cloud, Adobe Document Cloud, and Adobe Creative Cloud. The strategic alliance with Microsoft will increase Adobe’s customer base, increasing its bottom line.
Threat In The SWOT Analysis of Adobe :
- Piracy The biggest danger to Adobe is the software’s piracy due to torrent websites as well as illegal downloading of earlier versions that are available on the internet. In developing and emerging markets, there are a lot of pirates. CDs of Adobe software are readily available on the street for a couple of dollars.
- Free software There is a variety of open-source software that has been released which are available for free on the market. Most of these programs can perform well. GIMP is an excellent alternative to photoshop for designers who are amateurs. In the same way, there are alternatives to Corel draw, Dreamweaver, and so on. Open-source software may not be utilized by serious programmers however it does take away a large portion of market shares.
- Competitors: Adobe’s products and services are in fierce competition across the globe. Technology has been disruptive. technological advancements have enabled new players to join the market, which has created high competition. This can cause pricing conflicts and could affect Adobe’s operating margins and profits.
- Threats to security: Adobe stores confidential customer information, which has always been a subject for hackers from criminal organizations. In addition, cyber-attackers constantly come up with different types of malware and viruses for the system. These are security threats that Adobe must be aware of in order to preserve the reputation it has built.
Limitations of SWOT Analysis for Adobe
While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely as a tool for strategic planning However, the analysis has its fair share of drawbacks.
- Certain aspects or capabilities of an organization could be both strengths and weak points at the same. This is among the most important limitations that SWOT analysis has. For instance, changing environmental regulations could be an issue for the company but however, but it could also be an opportunity in the sense that it allows the company to compete on the same level or gain an advantage over its competitors if it can develop its products quicker than competitors.
- SWOT doesn’t provide a way to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be a complete solution.
- The matrix is merely an initial point of reference for discussions on how suggested strategies can be implemented. It provides an evaluation window but did not provide any implementation plan that is based on the strategic the competitiveness of Adobe
- The SWOT model is a static evaluation and analysis of the current conditions with only a few potential modifications. As the environment, circumstances, and threats alter, the dynamic of the competitive landscape will not be apparent in one matrix.
- SWOT analysis can make a firm overemphasize the importance of a single external or internal aspect when formulating strategies. There are interrelations among the most important external and internal elements that SWOT cannot reveal, but can be vital in formulating strategies.
Weighted SWOT Analysis of Adobe
Due to the previously stated weaknesses of the SWOT analysis/ matrix, the corporate management determined to give the weightage to every internal strength and weakness of the business.
They also consider the likeliness of events happening in the near future, and the impact they can be on the performance of the company.
This is referred to as the Weighted SWOT analysis. It is superior to simple SWOT analysis since using weighted SWOT analysis Adobe managers are able to focus on the most important aspects and ignore the less important ones.
This also helps solve the problem of the long list, which causes organizations to make an extensive list, but none of the elements are considered to be important.
References Books on Adobe SWOT Analysis
Adobe (2018), “Adobe Annual Report”, Published in 2018.
Euromonitor (2018), “Technology Sector Analysis “, Published in 2018.
A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)
R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)
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